Debtageddon: US to Hit Debt Limit by Mid-November

The United States is set to exceed its $18.1 trillion debt limit by mid-November or early December, the Congressional Budget Office (CBO) said in a report on Tuesday.

WASHINGTON (Sputnik) — The CBO estimated that the Treasury will be able to continue borrowing beyond the October 1 end of fiscal year, “and have sufficient cash to make its usual payments through mid-November or early December.”

“If the debt limit is not increased, the Treasury will not be authorized to issue additional debt that increases the amount outstanding…That restriction would ultimately lead to delays of payments for government activities, a default on the government’s debt obligations, or both,” the CBO reported.

In March, the Treasury reached its previous $17.2 trillion borrowing limit and was granted a temporary $1.1 trillion extension by Congress.

The Congress, which has the sole authority to increase the government borrowing limit, will have approximately three weeks to raise the debt ceiling between the time they return to Washington in early September until the end of the fiscal year on October 1.

On Monday, the White House warned that the failure of Congress to raise the debt ceiling by the October deadline could negatively impact the US economy.